Facebook to Launch iTunes Competitor? [Update]

All Facebook claims to have heard that Facebook has been working on launching an iTunes competitor.

Few details about the upcoming service is available, but Facebook has reportedly been pursuing agreements with a number of record labels and is actively recruiting for an executive for this new subdivision.

Facebook is a popular social networking site that was originally launched for college students in 2004. In September 2006, Facebook opened its door to the general population and has grown to be the 3rd most popular website on the internet in terms of pageviews.

Update: PaidContent.org claims that this rumor is inaccurate and that Facebook is actually working with Apple to promote music on Facebook.